India's $45 billion startup collapse casts uncertainty on the future of its tech industry.

India’s tech economy faces significant challenges and risks, as evidenced by the struggles of leading startups. Once seen as a burgeoning market for technology startups, the reality has shifted with major companies like Byju's and Paytm facing severe difficulties. Byju's, an online education pioneer and formerly valued at $22 billion, has seen its valuation plummet by over 90%. Paytm, which had the largest initial public offering in India’s history in 2021, has seen its stock fall by about 80%. Additionally, Oyo Hotels, a once-celebrated lodging business, has experienced a valuation drop of approximately 75% due to accounting issues and conflicts with partners. Consequently, funding for new startups is also dwindling.